Colorado's marijuana industry generated $2.39 billion in direct and secondary business revenue and created 18,005 jobs in 2015, according to the latest 'Economic Impact of Marijuana Legalization in Colorado' report from the Marijuana Policy Group (MPG).
More than 12,000 of those jobs directly came from the cannabis industry, while roughly 5,400 came from the new ancillary business that have popped up to support the state’s thriving marijuana market. Ancillary businesses include consultant groups, construction companies hired to build facilities, and security services, among others.
Cannabis sales also soared, increasing by over 42 percent from $699 million in 2014 to nearly $1 billion ($996 million) in 2015. To put that in perspective, those sales numbers are bigger than the Gross Domestic Product (GDP) of countries such as Grenada and The Gambia.
Tax revenue also increased 52 percent to $121.2 million in 2015, passing casino and gaming tax revenues by 14 percent. Cannabis tax revenue is almost three times larger than alcohol tax revenue.
According to the report, this increase in sales is not attributable to an increase in demand, but rather due to a "supply shift away from gray and black market suppliers, toward licensed suppliers." The researchers made that determination based on anecdotal evidence and a reduction in police complaints about black market cannabis, according to a MPG spokesperson.
This dramatic industry growth will eventually plateau, according to MPG. Instead of seeing double digit year-to-year growth, the research group expects the market to be saturated by 2020 and industry growth to level off between 2 percent and 3 percent.
Read the full report here.
Colorado’s marijuana industry at a glance*
• Colorado’s marijuana industry generated $996 million dollars in sales in 2015, up 42.4 percent from 2014 ($699 million).
• 59 percent of sales revenue came from the retail (adult-use/recreational) market, while the balance (41 percent) came from the medical market.
• Colorado’s marijuana industry is larger than some countries’ Gross Domestic Product (GDP). This includes Grenada ($978 million), The Gambia ($851 million), and Samoa ($761 million). (Source: World Bank)
• For every dollar invested in marijuana cultivation, $2.13 is generated in the Colorado economy (measured in employment and product output).
• For cannabis cultivators, employees are the biggest cost to do business, followed by HVAC and mechanical systems, electricity and fertilizers and pesticides.
*Source: 'Economic Impact of Marijuana Legalization in Colorado' report, unless otherwise cited.
